Brazil Eyes New Crypto Tax for International Transfers
Brazil is thinking about a big change, taxing cross-border crypto transfers under its financial transaction tax, the IOF.
People close to the talks say the Finance Ministry is behind the push.
Their goal is to close what they see as a loophole in Brazil’s foreign exchange tax rules by treating some stablecoin and crypto payments just like regular currency exchanges.
If this goes through, dollar-backed stablecoins like Tether’s USDT, especially when used for international payments, would get hit with the IOF tax.
Right now, Brazil only applies the IOF to foreign currency exchanges.
Crypto trades aren’t taxed this way yet; investors just pay income tax on capital gains if they go over the monthly exemption.
